Survey: CEOs Foresee Continued Weak Economy

Compiled ByTraci Purdum CEOs predict a continued weak economic outlook for the remainder of 2003, according to a recent survey by The Business Roundtable, a Washington, D.C.-based association comprised of CEOs from U.S. corporations. The economic outlook survey, which drew responses from 120 of the 150 member companies, found that 45% of survey respondents expect their company's employment to drop in the next six months, 27% expect their U.S. capital expenditures to decrease over the next six months, 56% expect sales to increase and on average, CEOs expect GDP growth to be in the 2.2% range for the remainder of the year. "Another interesting finding of this survey is that the greatest cost pressures on business are the dual threats of rising health-care costs and rising litigation costs," says John T. Dillon, chairman of The Business Roundtable and chairman and CEO of International Paper Co. "These factors are placing enormous cost pressures on U.S. companies, and we must look for ways to address them in the near term."